Determinants of Organizational Culture and Climate Essay
determinants and dimensions 0f organisational culture and climate. The effectiveness and success of an organization is not solely measured by profitability, it can also be measured by the way business is done and how the company is perceived by both its employees and the external community. These processes and formed impressions are functions of organizational culture which may be defined in several ways. The organization itself has an invisible quality – a certain style, a character, away are doing things – that may be more powerful than the dictates of any one person or any formal system. ulture is: A pattern of basic assumptions – invented, discovered, or developed by a group as it learns to cope with its problems of external adaptation and internal integration – that has worked well enough to be considered valid, and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. For our purposes, organizational culture consists of the shared values and assumptions of how its members will behave, or more specifically it can be defined as shared philosophies, ideologies, values, beliefs, assumptions, expectations, attitudes, and norms It includes the following dimensions:
Observed behavioral regularities when people interact, such as organizational rituals and ceremonies, and the language commonly use The norms shared by working groups throughout the organization, such as ‘Ladies and Gentlemen serving Ladies and Gentlemen’, from Ritz–Carlton The dominant values held by an organization such as ‘service quality’ or ‘price leadership’ The philosophy that guides and organization’s policy towards employees and customers The rules of the game for getting along in the organization, or the ‘ropes’ that a newcomer must learn in order to become an accepted member The feeling or climate conveyed in an organization by the physical layout in which its members interact with customers or other outsiders. Note that no dimension by itself represents the culture of the organization.
Taken together, however, they reflect and give meaning to the concept of organizational culture. Top management must define these attitudes, values, and expectations that they want organizational members to share. Organizational culture is sometimes measured by organizational climate. Climate is the employee’s perception of the atmosphere of the internal environment. Organizational climate is important because the employee’s perception of the organization services the basis for the development of their attitudes towards it. Their attitudes in turn affect their behavior. Climate is concerned with the entire organization and all major subunits within it. Morale is an important part of organizational climate.
Morale is a state of mind based on attitudes and satisfaction with the organization and can be affected by: Structure – the degree of constraint on members, that is, the number of rules, regulations, and procedures Responsibility – the degree of control over one’s own job Rewards – the degree of being rewarded for one’s efforts and being punished appropriately Warmth – the degree of satisfaction with human relations Support – the degree of being helped by others and cooperation Organizational identity and loyalty – the degree to which employees identify with the organization and their loyalty to it Risk – the degree to which risk-taking is encouraged. Organizational culture and climate are different, but related.
Climate is a sharing of perceptions of the intangibles of the internal or real environment of the occupational community (i. e. both the small workgroup, such as chefs, and the larger workgroup, as in all the employees of the hotel), while culture is the values and assumptions of the ideal environment that management hopes will be instilled into all employees. Thus culture informs climate. The terms “organizational culture” and “organizational climate” are another pair of terms that appeared in the literature, this time in the organizational culture literature, which deserves some attention here. Organizational culture and organizational climate often appeared to be used interchangeably. culture is about deeply held assumptions, meaning, and beliefs. 005Climate, on the other hand, refers to the manifestation of practices and patterns of behavior rooted in the assumptions, meaning, and beliefs that make up the culture. organizational culture that have emerged out of the literature among which the relationship between organizational culture and organizational climate differs. The three perspectives are (a) integration (there is one culture in an organization), (b) differentiation (subcultures exist in an organization), and (c) fragmentation (ambiguity; culture can exist at the individual level in an organization). The Integrationalist assumption is that culture and climate are consistent with each other, where as the Differentiation and Fragmentation perspectives assume there is room for inconsistency across climate and culture.
The distinction, similarities, and relationship between the two terms is important for the study of creativity and innovation because it drives the methodology that is used in conducting research in this area and because the majority of the research in the literature really is looking at the relationship between organizational climate and creativity and innovation , not organizational culture OC is determined by a variety of internal and external factors where internal factors are specific to the organization while external factors refer to a number of societal forces. At the very onset of this topic, it is useful to distinguish determinants and dimensions of OC. Determinants are the causes, while dimensions are the components of OC. You may say, determinants are those which influence whereas dimensions are those which are influenced.
Although OC refers to the internal environment of an organization, the nature of OC is determined by a variety of internal and external factors. One of the basis premises of organizational behavior is that outside environmental forces influence events within organizations. After acknowledging the dynamics of internal as well as external factors in this section, we will consider in greater detail the following seven internal factors. You will find these factors as determinants of OC in the following order: 1. Economic Condition 2. Leadership Style 3. Organizational Policies 4. Managerial Values 5. Organizational Structure 6. Characteristics of Members 7. Organizational Size Economic Conditions
Several dimensions of OC are influenced by an organization’s position on the economic cycle. The economic condition of any organization influences whether its budget should be “tight” or “loose”. In times of prosperity- when budgets are more loose than tight – the organizations tends to be more adventuresome. On the other hand, tight budget would lead to an air of caution and conservatism within an organization. Few managers are willing to suggest new programmers (probably deserving merit) when the order from above is to exercise tight control over expenses. So, dimensions of OC like “Risk-taking”, “Control”, Progressiveness and Development” etc. are directly influenced by economic conditions. Leadership Style
The leadership style prevailing in an organization has a profound influence in determining several dimensions of OC. The influence is so pervasive that you may often wonder whether OC is product of the philosophy and… Characteristics of Members Personal characteristics of the members of an organization also affect the climate prevailing in the organization. For example an organization with well educated, ambitious and younger employees is likely to have a different OC than an organization with less educated, and less upwardly mobile, older employees. The former might inculcate an environment of competitiveness, calculated risk-taking, frankness of opinions, etc. Organizational Size
In a small sized organization it is much easier to foster a climate for creativity and innovation or to establish a participative king of management with greater stress on horizontal distribution of responsibilities. On the other hand, in a large organization it is easier to have a more authoritative kind of management with stress on vertical distribution of responsibilities. This in turn leads to distinct environments as has been explained with the help of the concept of System 4 organization. We have now studies seven basic determinants of OC. The lost is not exhaustive but these are the basic internal factors determining the internal environment of an organization. Organizational Policies
Specific organizational policies can influence a specific dimension of OC to quite an extent. For example, if the company policy states that layoffs will be used only as a last resort to cope with business downturn, then it would, in general, foster an internal environment that is supportive and humanistic. Similarly if you are working in a company where it is agreed that the first beneficiaries of increased profit, then the OC will be characterized by High Reward Orientation and probably by High Progressiveness and Development. Managerial Values The values held by executives have a strong influence on OC because values lead to actions and shape decisions.
Values add to perceptions of the organization as impersonal, paternalistic, formal, informal, hostile or friendly. You will learn more about managerial values under the topic: Managerial Ethos Organization Structure The design or structure of an organization affects the perception of its internal environment. For example, a bureaucratic structure has an OC much different from a System 4 organization. What is a System 4 organization? According to Rensis Likert, all organizations can be classified into four major groups, depending upon the way basic organizational processes are conducted. These major groupings are as follows: System 1 – Exploitative Authoritative
System 2 – Benevolent Authoritative System 3 – Consultative System 4 – Participative Determinants of organisation climate 1. Structure – feelings about constraints and freedom to act and the degree of formality or informality in the working atmosphere. 2. Responsibility – the feeling of being trusted to carry out important work. 3. Risk – the sense of riskiness and challenge in the job and in the organization; the relative emphasis on taking calculated risks or playing it safe. 4. Warmth – the existence of friendly and informal social groups. 5. Support – the perceived helpfulness of managers and co-workers; the emphasis (or lack of emphasis) on mutual support. 6.
Standards – the perceived importance of implicit and explicit goals and performance standards; the emphasis on doing a good job; the challenge represented in personal and team goals. 7. Conflict – the feeling that managers and other workers want to hear different opinions; the emphasis on getting problems out into the open rather than smoothing them over or ignoring them. 8. Identity – the feeling that you belong to a company; that you are a valuable member of a working team. 9. Autonomy – the perception of self-determination with respect to work procedures, goals and priorities; 10. Cohesion – the perception of togetherness or sharing within the organization setting, including the willingness of members to provide material risk; 11.
Trust – the perception of freedom to communicate openly with members at higher organizational levels about sensitive or personal issues, with the expectation that the integrity of such communications will not be violated; 12. Resource – the perception of time demands with respect to task competition and performance standards; 13. support – the perception of the degree to which superiors tolerate members’ behaviour, including willingness to let members learn from their mistakes without fear of reprisal; 14. Recognition – the perception that members’ contributions to the organization are acknowledged; 15. Fairness – the perception that organizational policies are non-arbitrary or capri*cious; 16. Innovation – the perception that change and creativity are encouraged, including risk-taking into new areas where the member has little or no prior experience.